Minerals Corp plans second backdoor listing

30/04/2015 - 12:35

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Minerals Corporation, which in 2013 was one of the first Perth-based mining companies to attempt a backdoor listing, has announced plans to exit the resources sector by acquiring an online music competition business.

Minerals Corp plans second backdoor listing

Minerals Corporation, which in 2013 was one of the first Perth-based mining companies to attempt a backdoor listing, has announced plans to exit the resources sector by acquiring an online music competition business.

Under the terms of the deal, Minerals Corp will take full ownership of San Francisco-based Megastar Millionaire for 75 million shares at an issue price of 4 cents a share, worth a total of $3 million.

Minerals Corp will also issue an additional 100 million performance shares and convertible notes, which are subject to certain milestones being achieved.

If the deal is successful, Minerals Corp will change its name to MSM Group, and will be entitled to nominate three people to the new board of directors.

The company will also be required to undertake a $3 million capital raising in order to comply with ASX listing rules.

“As part of the acquisition, existing directors Nicholas Ong and Andrew Tunks will step down from the board,” the company said.

Matthew Foy will remain as a non-executive director, while Doug Barry, who was also an original venture investor in online music streaming service Pandora Media, will be non-executive chairman.

Megastar is preparing to launch its online, mobile-first music competition, which focuses on paid voting as the primary revenue stream.

It’s been a busy year for Minerals Corp, which backed out of plans to acquire the Riwaka project in New Zealand after concluding that it would be a bad investment.

Former managing director Murray Ward left the company in January, but filed proceedings in court in relation to alleged entitlements under his contract, which was disputed by the company.

The matter was settled last month, with Minerals Corp paying a reduced figure from the originally-claimed $75,915.

In December 2013, Minerals Corp announced plans to acquire technology company PRM Cloud Solutions.

However in July last year the deal was scrapped after certain conditions to the deal were not met within a specific timeframe.

Meanwhile, Fortunis Resources has announced it has exercised its option to acquire Zhenya Tsvetnenko’s Mpire Media and says it has received firm commitments to raise $6 million at 25 cents a share, pursuant to a prospectus.

Patersons Securities acted as lead manager for the raising.

Minerals Corp shares closed 26.6 per cent higher to 7.6 cents a share.

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